Perception of Consumers towards Afterpay Payment Service in Australia
Added on 2022-12-23
44 Pages8737 Words79 Views
Business DevelopmentData Science and Big DataHigher EducationMechanical EngineeringLanguages and CultureStatistics and Probability
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Running head: MANAGEMENT
Management
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Management
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1MANAGEMENT
Abstract
In this report the purpose of the common people of Australia, on the Afterpay payment service
has been evaluated. In this era of technology, the earnings and spending of individuals are
getting reimangined each and every day with the help of technological advancement in payment
methods. Majority of the payment services in Australia provides the service users with both
prepaid and post paid option; the popularity of Afterpay, a post payment service has got raised to
a great extent currently. While some off the researchers are of the perspective that post payment
systems like Afterpay is beneficial for the mentioned organization, a good number of
psychologists are of the perspective that the mentioned system is imposing adverse effect on the
consumers purchasing behaviour. In order to evaluate the perspective of the consumers a
distributed quantitative analysis has been performed. Samples were provided with questionaries
in order to collect data from the result off the study, it has been found that Majority of the
millennial prefer the Afterpay payment service over any other online payment methods.
However, cash on delivery is still found to be one of the mostly used payment methods by
millennial.
Abstract
In this report the purpose of the common people of Australia, on the Afterpay payment service
has been evaluated. In this era of technology, the earnings and spending of individuals are
getting reimangined each and every day with the help of technological advancement in payment
methods. Majority of the payment services in Australia provides the service users with both
prepaid and post paid option; the popularity of Afterpay, a post payment service has got raised to
a great extent currently. While some off the researchers are of the perspective that post payment
systems like Afterpay is beneficial for the mentioned organization, a good number of
psychologists are of the perspective that the mentioned system is imposing adverse effect on the
consumers purchasing behaviour. In order to evaluate the perspective of the consumers a
distributed quantitative analysis has been performed. Samples were provided with questionaries
in order to collect data from the result off the study, it has been found that Majority of the
millennial prefer the Afterpay payment service over any other online payment methods.
However, cash on delivery is still found to be one of the mostly used payment methods by
millennial.
2MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Research question............................................................................................................................5
Literature review..............................................................................................................................5
Methodology..................................................................................................................................17
Research Philosophy..................................................................................................................17
Research Design........................................................................................................................18
Research Approach....................................................................................................................19
Data collection method..............................................................................................................19
Sampling....................................................................................................................................20
Data analysis method.................................................................................................................21
Findings of the research.................................................................................................................21
Significance of the research paper.................................................................................................33
Limitations and delimitation..........................................................................................................33
Ethical consideration.....................................................................................................................34
References......................................................................................................................................35
Table of Contents
Introduction......................................................................................................................................2
Research question............................................................................................................................5
Literature review..............................................................................................................................5
Methodology..................................................................................................................................17
Research Philosophy..................................................................................................................17
Research Design........................................................................................................................18
Research Approach....................................................................................................................19
Data collection method..............................................................................................................19
Sampling....................................................................................................................................20
Data analysis method.................................................................................................................21
Findings of the research.................................................................................................................21
Significance of the research paper.................................................................................................33
Limitations and delimitation..........................................................................................................33
Ethical consideration.....................................................................................................................34
References......................................................................................................................................35
3MANAGEMENT
Research topic: people perception towards afterpay as a payment tool
Introduction
Tremendous growth in the usage of the internet as well as mobile phones has been
evidenced all over the world on the last decade. The earnings and spending of individuals are
getting reimangined each and every day with the help of technological advancement in payment
methods (Roozbahani, Hojjati and Azad 2015). In this era of technology, consumers are highly
concerned with the types as well as levels of payment methods that are being adopted by the
business operators. Therefore business owners have to keep up with the constant improvements
in order to avoid the risk of losing their consumers to the competitors. When it comes to the
millennium consumers, their chief and basic criteria of selecting payment methods include safety
and efficiency of the payment systems (Marinkovic and Kalinic 2017). A well functioning
system possesses the potential to stimulate the desire of the consumers to purchase services,
goods or assets from various business sectors. The costs of making payment differ on the basis of
the amount of transaction along with the payment tool used. In Australia, the internet penetration
rate is nearly 100 percent an approximately 70 percent of the population owns smartphones
(Cagliano, De Marco and Rafele 2017). Therefore, it can be understood that non cash payments
accounts for majority of the value of payments in the economy of Australia. As per the data
obtained from a survey conducted in the year 2027, non cash payments that are worth around
242 billion dollars were made in each of the business days that is almost 14 percent of the annual
GDP of the nation. More than 70 percent of the value of noncash transactions gets accounted for
by a limited number of high value payments that is made through the real time gross settlement
system of Australia (Liébana-Cabanillas, Herrera and Guillén 2016).
Research topic: people perception towards afterpay as a payment tool
Introduction
Tremendous growth in the usage of the internet as well as mobile phones has been
evidenced all over the world on the last decade. The earnings and spending of individuals are
getting reimangined each and every day with the help of technological advancement in payment
methods (Roozbahani, Hojjati and Azad 2015). In this era of technology, consumers are highly
concerned with the types as well as levels of payment methods that are being adopted by the
business operators. Therefore business owners have to keep up with the constant improvements
in order to avoid the risk of losing their consumers to the competitors. When it comes to the
millennium consumers, their chief and basic criteria of selecting payment methods include safety
and efficiency of the payment systems (Marinkovic and Kalinic 2017). A well functioning
system possesses the potential to stimulate the desire of the consumers to purchase services,
goods or assets from various business sectors. The costs of making payment differ on the basis of
the amount of transaction along with the payment tool used. In Australia, the internet penetration
rate is nearly 100 percent an approximately 70 percent of the population owns smartphones
(Cagliano, De Marco and Rafele 2017). Therefore, it can be understood that non cash payments
accounts for majority of the value of payments in the economy of Australia. As per the data
obtained from a survey conducted in the year 2027, non cash payments that are worth around
242 billion dollars were made in each of the business days that is almost 14 percent of the annual
GDP of the nation. More than 70 percent of the value of noncash transactions gets accounted for
by a limited number of high value payments that is made through the real time gross settlement
system of Australia (Liébana-Cabanillas, Herrera and Guillén 2016).
4MANAGEMENT
Majority of the value of these payment methods are associated with the settlement of
foreign exchange along with the securities market transactions. One of the major payment
methods in Australia includes the Buy Now, Pay Later (BNPL) digital service that allows the
users to buy products both online as well as offline immediately and pay the purchase in
instalments within a limited period. Another payment service that has gained popularity in the
nation includes Paypal that makes almost 28 percent of the online payment of the nation (Chan et
al. 2017). Apart from the two mentioned payment methods, a good number of pre and post paid
services are available in Australia. Thus a huge competition exists between the existing payment
service providing organizations in the nation.
While majority of the mentioned payment services provides the service users with both
prepaid and post paid option, the popularity of Afterpay, a post payment service has got raised to
a great extent currently. The afterpay service has been launched in the year 2015, and within a
limited period of time the service as proved to be a revelation in Australia with approximately
2.32 million people using the service for transaction (Aswani et al. 2018). The chief attraction of
the mentioned service includes After Pay payment service provides the consumer with the
opportunity to buy whatever product or service they want and enables them to make the payment
in four instalments paid fortnightly. The target consumer of the after pay service includes the
millenniums. The service is available at more than 10,000 shops throughout Australia and New
Zealand. While the mentioned service has drastically increased the sales of the organizations,
according to researchers this service has the potential to contribute towards increased financial
stress amongst the shoppers. Over the past few years, the mode of payment has been of great
concern to a large number of consumers especially the youngsters of the current generation.
Most of the young generation is fully focused on trending activities such as after pay method as
Majority of the value of these payment methods are associated with the settlement of
foreign exchange along with the securities market transactions. One of the major payment
methods in Australia includes the Buy Now, Pay Later (BNPL) digital service that allows the
users to buy products both online as well as offline immediately and pay the purchase in
instalments within a limited period. Another payment service that has gained popularity in the
nation includes Paypal that makes almost 28 percent of the online payment of the nation (Chan et
al. 2017). Apart from the two mentioned payment methods, a good number of pre and post paid
services are available in Australia. Thus a huge competition exists between the existing payment
service providing organizations in the nation.
While majority of the mentioned payment services provides the service users with both
prepaid and post paid option, the popularity of Afterpay, a post payment service has got raised to
a great extent currently. The afterpay service has been launched in the year 2015, and within a
limited period of time the service as proved to be a revelation in Australia with approximately
2.32 million people using the service for transaction (Aswani et al. 2018). The chief attraction of
the mentioned service includes After Pay payment service provides the consumer with the
opportunity to buy whatever product or service they want and enables them to make the payment
in four instalments paid fortnightly. The target consumer of the after pay service includes the
millenniums. The service is available at more than 10,000 shops throughout Australia and New
Zealand. While the mentioned service has drastically increased the sales of the organizations,
according to researchers this service has the potential to contribute towards increased financial
stress amongst the shoppers. Over the past few years, the mode of payment has been of great
concern to a large number of consumers especially the youngsters of the current generation.
Most of the young generation is fully focused on trending activities such as after pay method as
5MANAGEMENT
the purchasing tool across the world. While post payment services like Afterpay is imposing
positive impact on the sales of retail stores, it has the potential to impose negative impact on the
purchasing power of the consumers (Khalilzadeh, Ozturk and Bilgihan 2017). It has been found
that approximately 30 percent of the total users of Afterpay have missed the AfterPay payment
more than once. Considering the fact that majority of the purchases from Afterpay is made by
millenniums, in a survey, 65 percent of the participant stated that the fact they don’t have to pay
instantly for a particular product or the service enhanced their desire to buy the product which
they would not normally purchase. It has been seen that most purchased products that are being
purchased by the consumers using the after pay service includes luxury items. Majority of the
millenniums are found to be using this service for buying clothing.
According to psychologist, post payment services like AfterPay is deteriorating the
purchasing attitude of the teenagers as well as the millennium by enhancing their tendency to
purchase products on debts. While a good number of the Australian population is fine with the
concept of buying things in instalment since they believe that people who are opting for such a
option possess a steady income flow for meeting whatever payment they are obliged to,
according to several individuals, long term use of majority of the payment services can lead to a
scenario where people will lose track of the commitment or will get over burdened (Pei et al.
2015). Thus it has become really crucial for the organization to understand the perception of the
consumers about the Afterpay payment service. The chief purpose of this research study is to
indentify how the common people of Australia feels about Afterpay as a payment service tool.
The research paper will analyse if the consumers thinks that the Afterpay service has made their
life easier or have imposed negative impact on their purchasing behaviour.
the purchasing tool across the world. While post payment services like Afterpay is imposing
positive impact on the sales of retail stores, it has the potential to impose negative impact on the
purchasing power of the consumers (Khalilzadeh, Ozturk and Bilgihan 2017). It has been found
that approximately 30 percent of the total users of Afterpay have missed the AfterPay payment
more than once. Considering the fact that majority of the purchases from Afterpay is made by
millenniums, in a survey, 65 percent of the participant stated that the fact they don’t have to pay
instantly for a particular product or the service enhanced their desire to buy the product which
they would not normally purchase. It has been seen that most purchased products that are being
purchased by the consumers using the after pay service includes luxury items. Majority of the
millenniums are found to be using this service for buying clothing.
According to psychologist, post payment services like AfterPay is deteriorating the
purchasing attitude of the teenagers as well as the millennium by enhancing their tendency to
purchase products on debts. While a good number of the Australian population is fine with the
concept of buying things in instalment since they believe that people who are opting for such a
option possess a steady income flow for meeting whatever payment they are obliged to,
according to several individuals, long term use of majority of the payment services can lead to a
scenario where people will lose track of the commitment or will get over burdened (Pei et al.
2015). Thus it has become really crucial for the organization to understand the perception of the
consumers about the Afterpay payment service. The chief purpose of this research study is to
indentify how the common people of Australia feels about Afterpay as a payment service tool.
The research paper will analyse if the consumers thinks that the Afterpay service has made their
life easier or have imposed negative impact on their purchasing behaviour.
6MANAGEMENT
Research question
The chief aim of the research is to explore the perception of the individual towards afterpay as a
payment tool.
The chief objectives of this study are as follows:
a) To explore the customer behaviors over time
b) To explore the customer behavior theory and its application on the after pay methods
When it comes to the research questions of the paper, it is as follows:
a) What is consumer behaviour theory?
b) How does consumer behaviour theory affect market sales?
c) What is the effect of digital payments methods on consumer behaviours?
d) What are the effects of the After-play payments methods on consumer behaviours?
Literature review
After pay Payment tool
A payment system can be defined as a kind of system that is used for the settling the financial
transactions by transferring monetary value. The tool used for payment has been designed for
facilitating the acceptance of electronic payment for the purpose of online transactions. With the
emergence of technological development, online payment tools are gaining more and more
popularity (Kolinjivadi et al.2015). The chief reason behind this is the enhancement of internet
for both banking and shopping purposes by the consumers, especially the millennial. Amongst
Research question
The chief aim of the research is to explore the perception of the individual towards afterpay as a
payment tool.
The chief objectives of this study are as follows:
a) To explore the customer behaviors over time
b) To explore the customer behavior theory and its application on the after pay methods
When it comes to the research questions of the paper, it is as follows:
a) What is consumer behaviour theory?
b) How does consumer behaviour theory affect market sales?
c) What is the effect of digital payments methods on consumer behaviours?
d) What are the effects of the After-play payments methods on consumer behaviours?
Literature review
After pay Payment tool
A payment system can be defined as a kind of system that is used for the settling the financial
transactions by transferring monetary value. The tool used for payment has been designed for
facilitating the acceptance of electronic payment for the purpose of online transactions. With the
emergence of technological development, online payment tools are gaining more and more
popularity (Kolinjivadi et al.2015). The chief reason behind this is the enhancement of internet
for both banking and shopping purposes by the consumers, especially the millennial. Amongst
7MANAGEMENT
the various online pay services available in Australia, the one that has attract the consumers to a
great level within a limited amount of time is the After pay payment service (Ab Hamid and
Cheng 2019). The mentioned payment service accepts both credits as well as debits and allows
the consumers to make any payment latter within a stipulated amount of time. The Afterpay
payment service was founded in Australia in the year 2015 and is currently used by more than 3
million users. According to Ab Hamid and Cheng (2019), the mentioned payment service is
currently one of the most used payment services available in Australia. In the year 2017, the
Afterpay group had merged with the After Touch group and this decision of the organization has
led to be the leader of the “buy now pay latter’ industry (Ab Hamid and Cheng 2019). Apart
from Australia, The Afterpay Touch group currently operates in United States, Australia and
New Zealand. The mentioned payment service is found to allow the retailers to offer the
consumers with the facility to buy any products on instalment which they are supposed to be paid
within 4 instalments. Additionally, the consumers are charged with no extra interest for the
instalment. However, in case a consumer fails to make the payment they are supposed to make
within the stipulated time, they needs to pay a penalty amount of 10 dollars as their first missed
payment penalty. Another obstacle of shopping or banking through the Afterpay payment service
includes the service can be used only by individuals who are above 18 years old (Imran et al.
2019).
Electronic payment
The term electronic payment is referred to the process of making payment for services or
goods through internet. An electronic payment includes any kind of non cash payment that does
not include a paper check. A good number of electronic payment methods are available in
Australia that includes credit cards, debit cards as well as Automated Clearing House Network.
the various online pay services available in Australia, the one that has attract the consumers to a
great level within a limited amount of time is the After pay payment service (Ab Hamid and
Cheng 2019). The mentioned payment service accepts both credits as well as debits and allows
the consumers to make any payment latter within a stipulated amount of time. The Afterpay
payment service was founded in Australia in the year 2015 and is currently used by more than 3
million users. According to Ab Hamid and Cheng (2019), the mentioned payment service is
currently one of the most used payment services available in Australia. In the year 2017, the
Afterpay group had merged with the After Touch group and this decision of the organization has
led to be the leader of the “buy now pay latter’ industry (Ab Hamid and Cheng 2019). Apart
from Australia, The Afterpay Touch group currently operates in United States, Australia and
New Zealand. The mentioned payment service is found to allow the retailers to offer the
consumers with the facility to buy any products on instalment which they are supposed to be paid
within 4 instalments. Additionally, the consumers are charged with no extra interest for the
instalment. However, in case a consumer fails to make the payment they are supposed to make
within the stipulated time, they needs to pay a penalty amount of 10 dollars as their first missed
payment penalty. Another obstacle of shopping or banking through the Afterpay payment service
includes the service can be used only by individuals who are above 18 years old (Imran et al.
2019).
Electronic payment
The term electronic payment is referred to the process of making payment for services or
goods through internet. An electronic payment includes any kind of non cash payment that does
not include a paper check. A good number of electronic payment methods are available in
Australia that includes credit cards, debit cards as well as Automated Clearing House Network.
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